Pensions in Armenia

One of the biggest concerns for many is the existence of a good pension system in a given country. For Armenia, because the fall of the Soviet Union caused chaos in that particular system, it is still up and coming. Social pension was first introduced in 1990 but reforms over the year have ensured that the current population is taken care of to a degree, while those paying today will be able to reap the benefits when they reach the age of 63/65. Currently, over 17.5% of the population receives social pension, a number expected to increase to 29.1% at this rate by 2050, according to experts.

As of July 1, 2018, employees of Armenia born after 1973 are required to pay into the mandatory pension fund, as opposed to the voluntary scheme followed since 2011. They will be contributing:
- 5% of pay, if their monthly earnings are under AMD 500,000 (roughly equal to US$1,040), or
- 10% of pay, if their monthly earnings are AMD 500,000 or more.

Currently, there are three components to the pensions:

- State Pension: consists of social and labor, granted to all individuals who reach the age of 63/65, both for laborers and not. This comes out of the State budget.

- Mandatory Funded Pension: This is a return on investment from mandatory funded pensions collected throughout the years.

- Voluntary Funded Pension: Includes all payments of supplementary pension collected over the years from income as we as insurance fees.

From these three pillars, the State Pension system includes labor, military and social components. Pensions are given irrespective of nationality, race, sex, language, religion, political or other views, social origin, property, or other status. Length of service for 1992-2013 is defined by proof of salaries and income tax, while after 2013, through the service record book or similar documents specified by the government.

Pensions are assigned when the citizen writes out an application form. One can be refused a pension if 1.) They are not entitled to it; 2.) They have no permanent residence registered; 3.) They have failed to submit the necessary documentation in a timely manner. The time it takes to receive the pension ranges according to type and if the documents were filed correctly on your part.

Officially, the pension shall be granted:

1) from the date of submitting the application;
2) from the date the state authorized body responsible for medical-social expert examinations recognizes the individual as a person with disability, if the application on granting a pension has been filed within three months after such a day;
3) from the date of death of the breadwinner, if the application on granting a pension has been filed within six months after such a date; and
4) from the date of retiring from military service, provided the military servant applies for a pension within six months after his or her due retirement.

Labour includes:

Old age
-63 y/o with over 25 years of work experience
-63 y/o with over 10 years of experience
-62 y/o with over 35 years of experience and is not employed

Privileged
(55 y/o with 25 years’ experience in which over 15 years were spent in hazardous/heavy conditions, 59 y/o with over 25 years’ experience out of which at least 20 were in hazardous/heavy conditions, 45 y/o & suffers from dwarfism with over 20 years’ experience)

Long service
Employees of civil aviation, including engineers, air traffic control flight operators, stewards, air crews, etc. receive special pension plans from 45 y/o

Disability
Pensions for disabled individuals due to occupational injury and disease are given based on age group for 2-10 years

Survivor
-Students who have lost guardians before the age of 23 are eligible for survivor pension
-Family members of an individual deceased due to occupational injury are eligible

Partial – granted until one reaches age of 63
-55 y/o in education sector or in certain sectors of culture with over 25 years of experience, over 12 in their sector
-50 y/o actors and show organizers in theatre with over 25 years of work experience, over 12 in their sector

The labor pension shall be calculated based on the following formula: P=B+ (N x V) x C, where: P is the monthly pension amount, B is the basic pension amount; N is the years of service; V is the service value per year; C is the pensioner’s personal coefficient.
The personal coefficient of a pensioner shall be calculated according to the following formula: 1) For years of service up to 25 years (inclusive): C=0.04 x N ; 2) For years of service over 25 years: C=1+0.02 x (N-25).

Social includes:

Old age
-65 years of age not eligible for labor pensions

Disability
-Those not eligible for labor or military pensions can apply, including children born with disabilities, and will receive for the duration of the disability

Survivor
-Given to those not qualified for labor or military survivor pension but who have lost their benefactors, receiving basic pension based on whether one or both parents have died. For each parentless child under the age of 18, the survivor’s social pension shall be calculated at the five-fold amount of the basic pension.

Documents Necessary for Pension Application
If one is eligible for pension, based on the info provided above and on the MLSA.am website, he/she must apply at the nearest office that processes these cases. See the list of territorial departments of social security service offices by districts available here. Documents required:

Written request (dimum)
ID with grantsoum
SSN
Documents proving years of work experience
Photo (4x6)
Application form filled out at the office

Once done, you will receive a document which includes the application number, the date, the staff member’s contact information, and the deadline by which you must have any extra paperwork submitted, if necessary. You will receive an answer to your application within five working days. The amount you will receive is dependent on multiple factors available on the ministry’s website. Note: It is possible to be denied pension if you are considered ineligible, do not have a registered address (grandzoum), the documents presented and that which is available in official files do not coincide.